News 19 may — 11:36

Brazil's stock market plunges after corruption claims

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Brazil's Bovespa stock market was briefly halted as investors reacted to corruption allegations against Brazilian president Michel Temer, BBC reports.

Stocks plunged more than 10% at the start of trading, prompting circuit breakers to kick in and halt dealings.

President Temer was forced to deny a newspaper report that he gave consent to paying off a witness in a huge corruption scandal.

Investors are concerned that Mr Temer's reform plans could be derailed.

Mr Temer is trying to get pension reforms through Congress that would mean men would have a minimum retirement age of 65, and women 62, and most people would contribute more. There is currently no minimum retirement age.

There are also labour reforms on the cards to weaken trade union bargaining powers and make hiring and firing workers easier.

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